Severstal to invest $140 mln in Vorkutaugol coal mining business in 2008

OAO Severstal is planning to make significant investments in coal mining businesses in Vorkutaugol, Northern Russia. Allocations for the development of the Vorkutaugol mines will constitute RUR3.5 bn ($140mln) in 2008 – 4% higher than 2007’s total investment.

The largest projects at Vorkutaugol in 2008 will be the technical re-equipment of the Severnaya, Zapolyarnaya and Vorgashorskaya mines and equipment upgrades at the Pechorskaya Central Coal-Preparation Plant. coking coal to Cherepovets Iron and Steel, Severstal’s largest business, and they have been the largest beneficiary of investment among Severstal’s coal and iron ore mining enterprises for a number of years.

The mines at Vorkutaugol provide coking coal to Cherepovets Iron and Steel, Severstal’s largest business, and they have been the largest beneficiary of investment among Severstal’s coal and iron ore mining enterprises for a number of years.

Roman Deniskin, general director of Severstal Resurs (manages all Severstal’s mining assets) said: “The improvement of industrial safety and working conditions for miners, as well as provision of support for the development of Vorkuta and the Komi Republic as a whole, are crucial for sustainable growth at Vorkutaugol.”